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SAN SALVADOR, July 14 (Reuters) – Salvadoran Finance Minister Alejandro Zelaya minimized on Thursday the possible positive impression of a lengthy-delayed offer with the Global Financial Fund, even as the extremely indebted nation stares down a attainable medium-term default.
El Salvador introduced it was negotiating a possible $1.3 billion financial loan with the IMF in March 2021, aimed at filling gaps in the Central American country’s budget and lessening substantial expenditures connected with the country’s financial debt, which in March surpassed $24 billion.
The deal’s foreseeable future has appeared uncertain considering that El Salvador rebuffed IMF calls for the government to reverse its determination to make bitcoin lawful tender past September.
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In his remarks on Thursday, Zelaya claimed discussions with the IMF continue on but played down the deal’s fiscal impact, which he stated would volume to significantly less than 10% of the nationwide finances.
“You have to place all these challenges into context, but we are preserving conversations and after we have a thing concrete we will announce it.”
Analysts which includes rankings agency Moody’s say the deal would boost El Salvador’s trustworthiness and help shore up its shaky finances. go through a lot more
“I’ve observed that some analysts believe that that the deal with the IMF is heading to wholly strengthen the well being of the country’s community funds, and no, it is a single part of our approach for advancement,” Zelaya said.
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Reporting by Nelson Renteria Writing by Brendan O’Boyle Modifying by Sandra Maler
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